1 00:00:00,200 --> 00:00:02,600 Speaker 1: Let's get right now to our guest. We have Bob 2 00:00:02,640 --> 00:00:05,279 Speaker 1: Mort's p w C chairman with me here in Singapore 3 00:00:05,320 --> 00:00:06,880 Speaker 1: kicking things off, and I know you have a panel 4 00:00:07,000 --> 00:00:09,239 Speaker 1: later today as well. Bob, great to see you. When 5 00:00:09,240 --> 00:00:11,760 Speaker 1: you look around the global landscape, though, when you were 6 00:00:11,800 --> 00:00:13,319 Speaker 1: just telling me some of the travel you've done over 7 00:00:13,320 --> 00:00:16,120 Speaker 1: the last sort a few weeks or so, how worried 8 00:00:16,200 --> 00:00:19,079 Speaker 1: are you that we're starting to see the impacts of 9 00:00:19,120 --> 00:00:21,800 Speaker 1: a big downturn. You definitely are seeing them. It's a 10 00:00:21,800 --> 00:00:24,840 Speaker 1: different level of acuteness depending on what part of the 11 00:00:24,840 --> 00:00:26,799 Speaker 1: world you may be in. If you're sitting in Europe, 12 00:00:27,440 --> 00:00:31,280 Speaker 1: that combination of the war, inflation and energy pricing and 13 00:00:31,480 --> 00:00:34,200 Speaker 1: or security of it and affordability of it is really 14 00:00:34,200 --> 00:00:38,239 Speaker 1: Problematicum you start to see in the US a feeding 15 00:00:38,320 --> 00:00:42,400 Speaker 1: of consumer confidence and potentially some changes in terms of 16 00:00:42,400 --> 00:00:44,680 Speaker 1: what the business community is doing. If you're here in Asia, 17 00:00:45,240 --> 00:00:47,239 Speaker 1: you see a little bit of a concern because of 18 00:00:47,240 --> 00:00:50,239 Speaker 1: that global economy. And obviously we've had the dependency, but 19 00:00:50,400 --> 00:00:53,240 Speaker 1: for some it's still full speed ahead. Yeah, we saw 20 00:00:53,560 --> 00:00:56,080 Speaker 1: President Biden and she meet and this is their first 21 00:00:56,160 --> 00:00:58,880 Speaker 1: face to face meeting since our President Biden became the 22 00:00:58,960 --> 00:01:01,200 Speaker 1: leader of the United States. It's really trying to defuse 23 00:01:01,280 --> 00:01:04,160 Speaker 1: these tensions here, But in your mind, what is the 24 00:01:04,200 --> 00:01:06,920 Speaker 1: off ram for these tensions? And I guess what does 25 00:01:06,959 --> 00:01:09,679 Speaker 1: it mean for global business too? So first, the meeting 26 00:01:09,920 --> 00:01:13,200 Speaker 1: yesterday was wanted and needed, and everybody was looking for 27 00:01:13,240 --> 00:01:15,640 Speaker 1: that signal no matter what it may be in terms 28 00:01:15,640 --> 00:01:17,319 Speaker 1: of where it goes, because it allows them to pivot 29 00:01:17,360 --> 00:01:20,840 Speaker 1: from there. Since it was at least neutral to slightly positive, 30 00:01:20,840 --> 00:01:23,720 Speaker 1: it gave a cautious optimism to the business community that 31 00:01:23,760 --> 00:01:26,520 Speaker 1: there may be hope and potentially changed going forward. So 32 00:01:26,560 --> 00:01:28,000 Speaker 1: what do we need to see now? We actually need 33 00:01:28,000 --> 00:01:30,920 Speaker 1: to see the working teams actually talk about substance and 34 00:01:30,959 --> 00:01:32,840 Speaker 1: come up with some changes in terms of how we 35 00:01:32,880 --> 00:01:35,920 Speaker 1: are interacting with one another. But it is causing the 36 00:01:35,920 --> 00:01:38,880 Speaker 1: business community to think about different scenarios that play out. 37 00:01:38,880 --> 00:01:40,800 Speaker 1: Will it get worse, will it get better? And I 38 00:01:40,840 --> 00:01:44,400 Speaker 1: want maximum flexibility so I can pivot very quickly, either 39 00:01:44,440 --> 00:01:47,440 Speaker 1: to take advantage of opportunities or to minimize the downside 40 00:01:47,480 --> 00:01:49,720 Speaker 1: risk as well. Yeah, and absolutely when we look at 41 00:01:49,760 --> 00:01:52,640 Speaker 1: the accounting and auditing talks as well that are happening 42 00:01:52,680 --> 00:01:54,880 Speaker 1: between the US and China, do you think there's going 43 00:01:54,920 --> 00:01:57,800 Speaker 1: to be an agreement there. I let's be clear, Um, 44 00:01:57,840 --> 00:02:00,840 Speaker 1: the p c o B wanted access to inspect what 45 00:02:01,000 --> 00:02:04,800 Speaker 1: work was done by auditors in China. There was agreement reach, 46 00:02:04,840 --> 00:02:07,760 Speaker 1: which is great news because we've been debating this for years. 47 00:02:08,120 --> 00:02:10,600 Speaker 1: You got that agreement. They did the inspection process and 48 00:02:10,639 --> 00:02:13,840 Speaker 1: they have concluded. We are still at stage one, four 49 00:02:13,919 --> 00:02:16,480 Speaker 1: stage process. They still need to assess the quality of 50 00:02:16,480 --> 00:02:18,360 Speaker 1: the work. They need to conclude, and then they need 51 00:02:18,400 --> 00:02:20,240 Speaker 1: to actually talk to one another and say, how do 52 00:02:20,280 --> 00:02:23,680 Speaker 1: we continue to enhance the trust in the information so 53 00:02:23,760 --> 00:02:26,040 Speaker 1: investors can make the decisions that they want and have 54 00:02:26,120 --> 00:02:30,600 Speaker 1: access to the right skills, opportunities and or investment potential 55 00:02:30,639 --> 00:02:32,520 Speaker 1: that might resist them. So we are at the Bloomberg 56 00:02:32,560 --> 00:02:34,920 Speaker 1: New Economy Forum here in Singapore. Five pillars of the 57 00:02:34,960 --> 00:02:37,320 Speaker 1: New Economy, and one of them is sustainability, which I 58 00:02:37,360 --> 00:02:38,799 Speaker 1: know is close to your heart and you're on a 59 00:02:38,840 --> 00:02:40,960 Speaker 1: panel later today about that as well. You've also been 60 00:02:41,000 --> 00:02:45,280 Speaker 1: at COP twenty seven. How far behind are we in 61 00:02:45,360 --> 00:02:48,360 Speaker 1: really trying to get to some of the sustainability targets. 62 00:02:48,480 --> 00:02:51,000 Speaker 1: We are far behind. Let's call it what it is. 63 00:02:51,400 --> 00:02:53,000 Speaker 1: A lot of commitments have been made over the last 64 00:02:53,000 --> 00:02:55,160 Speaker 1: couple of years, but our own research shows that we've 65 00:02:55,160 --> 00:02:57,280 Speaker 1: got to move eleven times faster than we have in 66 00:02:57,280 --> 00:03:01,839 Speaker 1: the last two decades. That's a huge demand momentum um, 67 00:03:01,880 --> 00:03:04,520 Speaker 1: and unfortunately we are not fulfilling the commitments that are 68 00:03:04,560 --> 00:03:07,520 Speaker 1: being put forth. I would say the cop meeting last 69 00:03:07,520 --> 00:03:11,760 Speaker 1: week was another inflection point, but it didn't capitalize and 70 00:03:11,840 --> 00:03:15,000 Speaker 1: build on the momentum in scale and speed necessary to 71 00:03:15,040 --> 00:03:16,720 Speaker 1: make it happen. So we've got a lot more work 72 00:03:16,760 --> 00:03:19,480 Speaker 1: to do. The business community is clearly engaged now, which 73 00:03:19,520 --> 00:03:21,600 Speaker 1: is great, and you're starting to see that both in 74 00:03:21,720 --> 00:03:24,800 Speaker 1: terms of their commitments turning into actions and results, and 75 00:03:24,800 --> 00:03:27,680 Speaker 1: we're getting the capital into the right places to try 76 00:03:27,720 --> 00:03:29,959 Speaker 1: to scale that up, to try to find the technologies 77 00:03:30,000 --> 00:03:31,959 Speaker 1: and the other innovations that will help quite a bit. 78 00:03:32,160 --> 00:03:33,679 Speaker 1: But a lot more work needs to be done, both 79 00:03:33,680 --> 00:03:37,920 Speaker 1: by business and governments. PTPC has made a commitment already 80 00:03:37,920 --> 00:03:39,360 Speaker 1: in terms of where we want to go from our 81 00:03:39,360 --> 00:03:44,600 Speaker 1: own net zero perspective. Our offices today are direct responsibilities 82 00:03:44,600 --> 00:03:47,880 Speaker 1: for admissions. We've already transferred nineties percent of them into 83 00:03:48,040 --> 00:03:51,400 Speaker 1: renewable energy sources. In terms of dependency, the big issue 84 00:03:51,400 --> 00:03:53,320 Speaker 1: for US is Scope three. It's when we're using other 85 00:03:53,360 --> 00:03:56,000 Speaker 1: service providers, and we are real looking at those in 86 00:03:56,080 --> 00:03:58,160 Speaker 1: terms of working with our business partners to say what 87 00:03:58,240 --> 00:04:00,840 Speaker 1: else can we do working with you, not by ourselves, 88 00:04:00,920 --> 00:04:03,400 Speaker 1: with you as part of the ecosystem to change that. 89 00:04:03,400 --> 00:04:06,080 Speaker 1: That goes to the hotels we stay in, the airlines 90 00:04:06,120 --> 00:04:08,360 Speaker 1: that we use, the way we transport our people from 91 00:04:08,400 --> 00:04:10,200 Speaker 1: place to place to place. And that's the work we 92 00:04:10,240 --> 00:04:11,720 Speaker 1: have on going right now. What are some of the 93 00:04:11,720 --> 00:04:14,000 Speaker 1: worst things we're doing. I was reading your LinkedIn post 94 00:04:14,080 --> 00:04:17,719 Speaker 1: and I know you're talking about fast fashion for example. Yeah, 95 00:04:17,760 --> 00:04:22,400 Speaker 1: so if you look the individual industry sectors are spending 96 00:04:22,480 --> 00:04:25,719 Speaker 1: time doing three things. One, how do we actually enhance 97 00:04:25,800 --> 00:04:28,919 Speaker 1: the sector itself and become more sustainable? So the fashion 98 00:04:28,920 --> 00:04:31,400 Speaker 1: industry is a great one where you talk about the 99 00:04:31,440 --> 00:04:33,840 Speaker 1: use of cotton or kashmire or other aspects like that. 100 00:04:33,920 --> 00:04:37,240 Speaker 1: But Second, what else can they be doing with governments 101 00:04:37,279 --> 00:04:38,640 Speaker 1: to say what can we change in terms of the 102 00:04:38,680 --> 00:04:41,200 Speaker 1: rules and regulations. That speeds up the curve of change. 103 00:04:41,520 --> 00:04:44,320 Speaker 1: And Third, how do we evidence to the consumer that 104 00:04:44,400 --> 00:04:47,000 Speaker 1: we actually have a sustainable product? Because at some point 105 00:04:47,000 --> 00:04:49,120 Speaker 1: the consumers want to see that. The question is will 106 00:04:49,160 --> 00:04:50,880 Speaker 1: they pay for it? But they at least want to 107 00:04:50,920 --> 00:04:53,000 Speaker 1: acknowledge it and they wanted to have trust in the 108 00:04:53,000 --> 00:04:55,080 Speaker 1: information in terms of the choices they're making. Can I 109 00:04:55,120 --> 00:04:57,640 Speaker 1: talk a little bit about your business here. Is PwC 110 00:04:57,800 --> 00:05:01,159 Speaker 1: potentially considering a split of the order an advisory business? 111 00:05:01,200 --> 00:05:04,480 Speaker 1: Absolutely not, um. Let me be very clear. Our strategy 112 00:05:04,560 --> 00:05:07,839 Speaker 1: is focused on two pillars, trust because the world needs 113 00:05:07,839 --> 00:05:10,640 Speaker 1: more of it and helping businesses and governments get to 114 00:05:10,680 --> 00:05:13,400 Speaker 1: the sustained outcomes they're looking for. In order to do that, 115 00:05:13,440 --> 00:05:15,240 Speaker 1: we need all of the competencies we have in p 116 00:05:15,279 --> 00:05:19,600 Speaker 1: TWOBC today in scale and as a result, our organizational structure, 117 00:05:19,600 --> 00:05:21,800 Speaker 1: the way we are set up is fit for purpose, 118 00:05:21,839 --> 00:05:24,560 Speaker 1: relevant in that strategy and the expectation of our stakeholders 119 00:05:24,760 --> 00:05:27,000 Speaker 1: will continue to watch to see if we need to move, 120 00:05:27,040 --> 00:05:29,560 Speaker 1: like any good business, but as of today and for 121 00:05:29,600 --> 00:05:31,720 Speaker 1: the foreseeable future, we don't see a need to change. 122 00:05:31,960 --> 00:05:34,120 Speaker 1: We want to continue to invest and we see big 123 00:05:34,120 --> 00:05:36,719 Speaker 1: opportunities in parts of this world as well. Asia. Pack 124 00:05:36,760 --> 00:05:39,800 Speaker 1: in particular is a big opportunity for us, and we 125 00:05:39,839 --> 00:05:41,120 Speaker 1: think it's going to be for the next ten of 126 00:05:41,160 --> 00:05:42,920 Speaker 1: twenty years, and as a result, we're investing a lot 127 00:05:42,960 --> 00:05:45,520 Speaker 1: of time, energy and money in building up our skills 128 00:05:45,520 --> 00:05:48,119 Speaker 1: and capabilities. You've been in Asia, you're staying in Asia, 129 00:05:48,200 --> 00:05:50,400 Speaker 1: coming back to India. Tell us what you're looking for, 130 00:05:50,440 --> 00:05:53,080 Speaker 1: what kind of acquisitions. So today, what we're looking for 131 00:05:53,160 --> 00:05:55,279 Speaker 1: is more skill sets in the area of cloud and 132 00:05:55,320 --> 00:05:58,039 Speaker 1: digital as well as E S G and the combination 133 00:05:58,080 --> 00:06:01,279 Speaker 1: of those two things are fundamental to any business and 134 00:06:01,520 --> 00:06:04,320 Speaker 1: country in terms of wanting to remain relevant going forward. 135 00:06:04,320 --> 00:06:06,640 Speaker 1: If you're going to rethink your supply chain, you actually 136 00:06:06,680 --> 00:06:09,560 Speaker 1: have to do it with digital technologies in mind as 137 00:06:09,600 --> 00:06:11,560 Speaker 1: well as then an E s G agenda in mind. 138 00:06:11,800 --> 00:06:14,520 Speaker 1: The other thing that's interesting, Juliette, when we talk about 139 00:06:14,760 --> 00:06:17,960 Speaker 1: supply chains, one of the challenges is do the companies 140 00:06:18,000 --> 00:06:21,240 Speaker 1: have the right information. So it's not only the producers, 141 00:06:21,279 --> 00:06:23,800 Speaker 1: it's actually the companies themselves being able to predict better 142 00:06:24,040 --> 00:06:25,719 Speaker 1: what do they need, where do they need it, when 143 00:06:25,720 --> 00:06:27,080 Speaker 1: do they need it, and what price are they going 144 00:06:27,120 --> 00:06:29,919 Speaker 1: to pay for that. That's huge in terms of information, 145 00:06:29,960 --> 00:06:32,960 Speaker 1: analytics and data key to that, and that's why those 146 00:06:32,960 --> 00:06:34,840 Speaker 1: two areas are really important for us in terms of 147 00:06:34,839 --> 00:06:36,440 Speaker 1: the skill sets we need. One of the things we're 148 00:06:36,440 --> 00:06:38,680 Speaker 1: watching very closely in the financial world is I guess 149 00:06:38,760 --> 00:06:40,520 Speaker 1: kind of you could call it the implosion of what's 150 00:06:40,560 --> 00:06:42,640 Speaker 1: been happening in the crypto space when it comes to 151 00:06:42,920 --> 00:06:47,160 Speaker 1: disclosure regulations. What kind of international standards do you see 152 00:06:47,200 --> 00:06:50,599 Speaker 1: and needed in the auditing world to kind of get 153 00:06:50,600 --> 00:06:53,560 Speaker 1: investor sentiment a bit more positive than Yeah, there's two 154 00:06:53,560 --> 00:06:55,920 Speaker 1: things that has to happen. One is making sure that 155 00:06:56,000 --> 00:06:59,960 Speaker 1: the shareholders, investors and the broader stakeholders have the necessary 156 00:07:00,200 --> 00:07:03,520 Speaker 1: information to compare and contrast companies to see what progress 157 00:07:03,520 --> 00:07:08,120 Speaker 1: have they made in the area of people, planet, good governance, etcetera. 158 00:07:08,600 --> 00:07:11,440 Speaker 1: And second, how can they compare one company versus another 159 00:07:11,520 --> 00:07:14,840 Speaker 1: because that investor activism in terms of where they put 160 00:07:14,840 --> 00:07:17,720 Speaker 1: their money or the consumer activism or employee activism, which 161 00:07:17,760 --> 00:07:19,600 Speaker 1: is going to be equally important over the next decade, 162 00:07:19,840 --> 00:07:21,480 Speaker 1: is really important. So we need to land a set 163 00:07:21,480 --> 00:07:24,920 Speaker 1: of standards to have that comparability. Second, then is how 164 00:07:24,920 --> 00:07:27,760 Speaker 1: do you get more trust in that information? And that's 165 00:07:27,760 --> 00:07:30,200 Speaker 1: where the auditors play a really important role in terms 166 00:07:30,200 --> 00:07:32,120 Speaker 1: of the type of work. Similar what they do in 167 00:07:32,240 --> 00:07:34,640 Speaker 1: financial information has to be applied now to the non 168 00:07:34,680 --> 00:07:37,000 Speaker 1: financial information because those two things are going to go 169 00:07:37,040 --> 00:07:39,360 Speaker 1: hand in hand as we think about investment thesis and 170 00:07:39,360 --> 00:07:41,520 Speaker 1: where people want to put their capital. You talked about 171 00:07:41,560 --> 00:07:44,960 Speaker 1: expanding and looking at this area on a macro business level, 172 00:07:44,960 --> 00:07:47,400 Speaker 1: though this is the time of year when I'm sure 173 00:07:47,400 --> 00:07:49,960 Speaker 1: you and your board are having discussions. Are you looking 174 00:07:50,080 --> 00:07:53,000 Speaker 1: at slowing hiring, are you looking at expanding? Are you 175 00:07:53,080 --> 00:07:57,480 Speaker 1: looking at adjusting wages to do with inflation? So as 176 00:07:57,520 --> 00:07:59,720 Speaker 1: we look at the external world and US as a 177 00:07:59,760 --> 00:08:03,320 Speaker 1: preftional services organization, you need more trust and those CEOs 178 00:08:03,360 --> 00:08:06,840 Speaker 1: and C suite need more help dealing with inflation, cost pressure, 179 00:08:06,880 --> 00:08:10,880 Speaker 1: supply chain e s G. Digitization and broader transformation. So 180 00:08:11,000 --> 00:08:14,960 Speaker 1: we don't see a slowdown in our ability to serve them. 181 00:08:15,040 --> 00:08:17,560 Speaker 1: So as a result, our investment thesis that we put 182 00:08:17,600 --> 00:08:20,400 Speaker 1: forward about eighteen months ago still continue. So we're ramping 183 00:08:20,480 --> 00:08:22,400 Speaker 1: up the hiring at a level that we had consistent 184 00:08:22,440 --> 00:08:24,680 Speaker 1: with the previous year. We do not see a slowdown now. 185 00:08:24,760 --> 00:08:27,760 Speaker 1: Having said that, you definitely have to reflect the market 186 00:08:27,760 --> 00:08:30,320 Speaker 1: in terms of talent the cost of that talent, and 187 00:08:30,320 --> 00:08:32,880 Speaker 1: there is inflationary pressures, but it's not just the money, 188 00:08:33,000 --> 00:08:35,560 Speaker 1: it's actually how do you treat people. So what's happening 189 00:08:35,559 --> 00:08:37,720 Speaker 1: there is you have to be really good in terms 190 00:08:37,800 --> 00:08:40,439 Speaker 1: of the comp and benefits, So that is an inflationary 191 00:08:40,440 --> 00:08:42,600 Speaker 1: pressure we have to be mindful of which will potentially 192 00:08:42,600 --> 00:08:46,120 Speaker 1: a road profits and ibadah. But second, how are you 193 00:08:46,160 --> 00:08:49,000 Speaker 1: setting up the right success for those individuals. We hire 194 00:08:49,080 --> 00:08:51,800 Speaker 1: thirty plus thousand people a year from universities alone, and 195 00:08:51,840 --> 00:08:54,319 Speaker 1: we're about three thirty thousand people plus around the world. 196 00:08:54,600 --> 00:08:56,440 Speaker 1: We have to re engineer the work. We have to 197 00:08:56,440 --> 00:08:59,120 Speaker 1: give them the appropriate skills and benefits and skills is 198 00:08:59,160 --> 00:09:01,320 Speaker 1: equal important. We have to make sure they've got a 199 00:09:01,440 --> 00:09:04,800 Speaker 1: comfort level in the organization and they need to have 200 00:09:04,840 --> 00:09:06,920 Speaker 1: more optionality in terms of the choices in terms of 201 00:09:06,920 --> 00:09:08,640 Speaker 1: what they do from their career path perspective, and that 202 00:09:08,679 --> 00:09:11,160 Speaker 1: goes to both career path and where and when and 203 00:09:11,200 --> 00:09:13,400 Speaker 1: how do they work each and every day. But Marritt 204 00:09:13,440 --> 00:09:16,080 Speaker 1: has been an absolute pleasure having you with us at 205 00:09:16,080 --> 00:09:18,960 Speaker 1: the Bloomberg New Economy Forum here in Singapore which is 206 00:09:19,040 --> 00:09:19,840 Speaker 1: kicking off today.